[CBS News] One day after House Speaker John It is not pronounced 'Boner!' Boehner... the occasionally weepy leader of House Republicans..., R-Ohio, bluntly stated that Republicans and Democrats are "almost nowhere" in their scramble to strike a deal before reaching the so-called "fiscal cliff" at year's end, President B.O. slammed the GOP for holding "middle class tax cuts hostage" and Sen. Orrin Hatch, R-Utah, charged that Mr. Obama's proposal is "a classic bait and switch."

Congress "can give families like yours a sense of security going into the New Year," the president argued in his weekly address, by acting now on "what we all agree on" - extending the Bush-era tax rates for Americans making less than $250,000 a year. If that doesn't happen, he said, "a typical middle class family of four will see their income taxes rise by $2,200."

Treasury Secretary Timothy Geithner on Thursday presented Republicans with Mr. Obama's "balanced approach" to dealing with the series of tax hikes and spending cuts set to go into effect Jan. 1, which he says will draw a net $1.6 trillion in revenue by allowing the current tax cuts to expire for the wealthiest two percent of Americans and overhauling the tax code.

"It's unacceptable for some Republicans in Congress to hold middle class tax cuts hostage simply because they refuse to let tax rates go up on the wealthiest Americans," the president said, a familiar sentiment that has framed his weekly addresses now for months. Promising to "sign this bill as soon as Congress sends it my way," he said, "with the issue behind us, we'll have more time to work out a plan to bring down our deficits in a balanced way - including by asking the wealthiest Americans to pay a little more, so we can still invest in the things that make our nation strong, like education and research."

#1
class warfare. How do they expect to collect when the "wealthy" simply move their money elsewhere, and refuse to cooperate - basically "go Galt" in a minor way by not creating jobs, not investing, and not spending - avoiding things that generate tax loads.

The liberal cargo-cult "magic" thinking is going to destroy the economy.

#2
The Champ is very concerned about the lack of progress on reaching an agreement. Able butt-boy and tax cheat Tim Geithner is the go-to person for the next three weeks while the Champ is away in Hawaii golfing and body surfing.

Remember everyone, the Champ seeks a "balanced approach" and will be "moving to the center" during his second term.

#4
Yes, hyperinflation appears inevitable. The two key areas or indicators that I am watching closely are the bond market and crude oil prices.

A possible third indicator would be a scheme to make gov't bond investment of a portion of 401k's mandatory. Boomers have a lot of dough socked away in 401k's. I believe a plan to seize these funds may be just around the corner.

#5
Ditto that Mr. B.
"a classic bait and switch."
I am glad they are using these words to describe this administration. -Con men- in action. That would make a good TV show. The problem is most people would fall for it even if it were a show. The liars believe their own lies.

#8
"The two key areas or indicators that I am watching closely are the bond market and crude oil prices. "

Not a bad idea. The Fed is controlling and namipulating rates on long-term US debt through the QE program. The price of oil is very difficult for anyone to manipulate over the long term - so that's a good indicator. IMO, China will move to dump US Treasuries when they are ready - but they follow a patient stratgey. When China does move away from holding US bons, and severs its peg to the dollar, then we are screwed. That is the time when hyperinflation is a real risk.

#10
#6 Mr. B, as one of those boomers with a 401k that could be attacked, do you have a recommendation as to where that money should be to safe guard it?
Posted by: AlanC 2012-12-02 09:10

I cannot advise AlanC. If I had a clue, I'd be doing it myself.

When I was a younger man back in flyover, we'd read about an old man passing away and the relatives finding Mason jars stuffed with money in the barn. We laughed and shook our heads. I no longer laugh, or shake my head.

#11
If Australia was wise they would create a new city along some uncharted coastline and name it Gault. Make it easy for foreigners to invest and build businesses there, or to shift assets, or simply to move. They might find a lot of Americans/British/French millionaires welcoming the home.

#13
A blinding flash of the obvious, but debt reduction is always a prudent course of action. Replacement or redundancy of household durable goods which could skyrocket in price (or not be available) might be another. If you use what happened, or is happening to folks along the east coast due to Hurricane Sandy, it might be helpful. FEMA blankets and MRE's only go so far.

I stay in pretty close contact with my financial advisor. We've developed a go-to-hell plan, but there are absolutely no guarantees we'd have the necessary time to execute it. The market is amazingly resilient, but if you're not prepared to kiss it goodbye, you may wish to re-look your investments. This shi* is not just going to go away.

#15
How do they expect to collect when the "wealthy" simply move their money elsewhere

Because the target is not just the $250K-plus group. It's not where the money really is. Say the Republicans roll over and agree to everything the White House wants. The tax cuts are extended one year, for all but the $250K-plus group.

Toward the end of the expiration a year later, the White House message is "We're still in a hole - we all need to share the pain. Those in the sub $250K-$100K bracket need to give up their cuts, plus we'll raise the tax rates on the $250K-plus".

#17
Interesting site with many trade indicators: One indicator is loans to the private sector. The "loans to the private sector are low in the U.S. compared to many other countries." The CPI is an indicator of inflation. The Donks are not to be trusted. You had better count your fingers after making a deal with them and then shaking hands.

#20
Once taxes are raised on folks making 200k the Obama admin will make the minimum wage $100/hour.

As for the 401k I would suggest pulling back to the company match only and parking 1/2 in cash and the rest in energy (Canadian dividend payers) Once the GIvernment decides to seize or force into certain investments borrow as much as you can from your 401k and pay interest to yourself.

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